Elon’s Worst Nightmare? AST SpaceMobile is Up 678% and It’s Coming for Starlink

If your uncle's anything like mine, stuck out in the boonies of Ohio where the cows and crackheads seem to have a bigger social circle than the regular folks, he's probably clinging to Starlink like it's the last beer at a family reunion. Let’s face it, Elon Musk's satellite setup has been the only thing keeping the internet alive in places where "high-speed" usually refers to how fast the local gossip spreads. But guess what? A new challenger just rolled up. AST SpaceMobile just dropped news that their first five commercial satellites, charmingly named “BlueBirds,” are set to launch in September. And let’s just say, Wall Street liked the sound of that.

When AST SpaceMobile dropped the news, its stock jumped higher than my grocery bill over the last 3 years. We’re talking a 50.7% pop in just one day. Add that to the 678.16% gain over the past three months, and you’ve got investors throwing money at AST like it’s a Dogecoin rally. 

(Source: Bloomberg)

So what’s causing all the excitement? These satellites are far from ordinary. They’re set to become the largest communications array in low-Earth orbit, aimed at providing internet to areas where regular cell towers simply can’t reach.

But can AST really go toe-to-toe with Elon and Starlink? Well, with heavyweight investments of over $110 million from  AT&T, Verizon, and Vodafone in its corner, AST isn’t exactly the scrappy underdog it might seem. The company’s got almost $290 million in the bank, a chunk of which has been bankrolled by some of the biggest names in telecom. And with the FCC (Federal Communications Commission) giving a big thumbs-up for its launch, AST is ready to stake their claim in a galaxy far, far away. 

But let’s not start planning the victory parade just yet. While these five satellites will provide some coverage, AST needs to launch between 45 and 60 satellites to really bring the pain to Starlink. So, for now, the service will be “non-continuous,” which is corporate speak for “spotty at best.”

So, what’s the next move? The first wave of these BlueBird satellites is gearing up for launch in mid-September. If all goes according to plan, we could see beta tests with AT&T and Verizon rolling out as early as December. The big picture? AST wants to make sure you can get a solid cellular signal, even if you’re out in the middle of nowhere. And they’re not slowing down—AST is already hard at work on the next 17 satellites, aiming to send them up in the first quarter of 2025.

It’s obvious that ATS CEO Abel Arellano feels confident that they are ready to compete on a world stage. “We have spent over seven years and over $1 billion investment to get to this point, along the way generating over 3,400 patent and patent-pending claims,” he said.

So the question is, could AST SpaceMobile actually take a bite out of Starlink’s market share? Well, I’d argue they’re well on their way, and with AT&T, Verizon, and Vodafone backing them, Elon’s definitely gonna have to watch his back.

Stocks.News holds positions in AT&T, Verizon, and Vodaphone.